What Could Possibly Go Wrong?
March 14, 2024
Large Banks vs. Small Banks
April 10, 2024If it feels like no one is out buying houses right now, you’re not too far off.
In fact, housing demand hasn’t been this low since 1995, due to high interest rates on new mortgages and perennially high prices on homes.
Those who currently own homes with lower interest rate mortgages, below the 6%+ that’s common today, are reluctant to move and take on a much higher rate. Those who take the leap are doing so only if they can get a premium for their property.
For comparison, a 30-year fixed rate mortgage averaged around 8.3% in 1995, whereas today you’re looking at around 7.6%.
This can’t keep going like this forever, which is why it’s a metric we’re watching as risk managers.
